CCDC 30 – Integrated Project Delivery: A Paradigm Shift

The Canadian Construction Documents Committee (“CCDC”) has published a new standard form contract, CCDC 30 – 2018 Integrated Project Delivery Contract (“CCDC 30”).

In brief, Integrated Project Delivery (“IPD”) seeks to eliminate the many shortcomings of traditional contractual arrangements, including the often adversarial environment spawned by the construction industry’s top-down contractual approach. Instead, IPD sets out an integrative and collaborative team-based project delivery method.. Arguably the most revolutionary element of IPD and CCDC 30 is the conception of the “Risk Pool”. The risk pool is comprised of the IPD parties’ expected profits, and is shared with each party if the project is completed on time and within budget. Should the risk pool be depleted, then the parties are obligated to finish the project for their hard costs, without profit expectations. This model intrinsically ties together teamwork, project performance, and financial incentives.

Read Tim’s full article for an overview of some of the key features of CCDC 30 and the IPD delivery model more generally, including the innovative restructuring of the construction project  risk pool, IPD team structures, team member responsibilities and roles, and a description of the four distinct construction phases of CCDC 30. In coming weeks, check back for further articles that will canvas issues including builders’ lien rights and owner holdback obligations, specific CCDC 30 termination, change order and waiver-of-liability clauses, cash-flow considerations, and dispute resolution and conflict management processes under the IPD model.